contract law(consideration)

Question 1

what is consideration

Answer 1

Consideration is essential
for a valid contract because
law requires a bargain and
not a gift This means that both parties to the contract must give something to each other by way of exchange.

Question 2

case study for consideration

Answer 2

Currie v Misa (1875),

Question 3

what are the 2 types of consideration

Answer 3

Executed consideration
Executory consideration

Question 4

what is Executory consideration

Answer 4

a promise for a promise.

Question 5

what is Executed consideration

Answer 5

an act in return for a promise

Question 6

what are the principles of consideration

Answer 6

Consideration need not be adequate but must be sufficient

Past consideration is not good consideration

Consideration must move from the promisee

Performance of an existing duty

Part payment of a pre-existing debt

Question 7

case study for Must be sufficient but need not be adequate

Answer 7

Thomas v Thomas (1842):

Question 8

when will consideration be seen as adequate

Answer 8

As long as there is some value consideration will be adequate.

Question 9

case study for Must be sufficient but need not be adequate (value)

Answer 9

Chappell v Nestlé [1960]

Question 10

what does Sufficient means

Answer 10

that consideration must be real and have
some value.

Question 11

case study for sufficent

Answer 11

White v Bluett [1853]

Question 12

what is Past consideration is not good consideration

Answer 12

Past consideration is defined as something that is already done
at the time the agreement is made. Where consideration is past,
it has no value.

Question 13

case study for Past consideration is not good consideration

Answer 13

Re McArdle [1951]

Question 14

an exception to past consideration

Answer 14

when the promisor makes an
express or implied request for a particular task, and there must be an implied understanding that the task should be paid for.

Question 15

case study for exception to past consideration

Answer 15

Re Casey’s patent (1982)

Question 16

exceptions for past consideration

Answer 16

An express or implied request by the promisor to the
promisee to perform a task

An implied promise inherent in the request that the promisor
will pay the promisee a reasonable sum for performing the
task

The performance of the task, and

The payment of money

Question 17

what does Consideration must move from the promisee mean

Answer 17

that a person cannot sue or
be sued under a contract unless they have provided consideration for it.

Question 18

case study for Consideration must move from the promisee

Answer 18

Tweddle v Atkinson [1861]

Question 19

what is Performance of an existing duty

Answer 19

A pre-existing duty is something that you are already legally required to
do. If someone just does what they were already bound to do, this is not good
consideration.

Question 20

case study for Performance of an existing duty

Answer 20

Collins v Godefrey (1831):
Stilk v Myrick (1809):

Question 21

when is Performance of an Existing Duty good consideration

Answer 21

if you do something extra

Question 22

case study for good consideration

Answer 22

Hartley v Ponsonby [1857]

Question 23

Part Payment of a Debt

Answer 23

Part payment of a debt is not good consideration. This rule arises from
the Pinnel’s case (1602)

Question 24

case study for part payment of a debt

Answer 24

Foakes v Beer [1884]

Question 25

Part Payment of a Debt: Exceptions

Answer 25

accepting something
other than money for the whole debt is good consideration even if it
is not of equal value